What Does H&R Real Estate Investment Trust's (TSE:HR.UN) Share Price Indicate?

H&R Real Estate Investment Trust (TSX:HR.UN), a equity real estate investment trusts (reits) company based in Canada, had a relatively subdued couple of weeks in terms of changes in share price, which continued to float around the range of CA$20.98 to CA$21.97. However, is this the true valuation level of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at H&R Real Estate Investment Trust’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. View our latest analysis for H&R Real Estate Investment Trust

What is H&R Real Estate Investment Trust worth?

Good news, investors! H&R Real Estate Investment Trust is still a bargain right now. According to my valuation, the intrinsic value for the stock is CA$32.3, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. H&R Real Estate Investment Trust’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. If you believe the share price should eventually reach its true value, a low beta could suggest it is unlikely to rapidly do so anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range.

Can we expect growth from H&R Real Estate Investment Trust?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Though in the case of H&R Real Estate Investment Trust, it is expected to deliver a highly negative earnings growth in the next few years, which doesn’t help build up its investment thesis. It appears that risk of future uncertainty is high, at least in the near term.

What this means for you:

Are you a shareholder? Although H&R Real Estate Investment Trust is currently undervalued, the negative outlook does bring on some uncertainty, which equates to higher risk. Consider whether you want to increase your portfolio exposure to H&R Real Estate Investment Trust, or whether diversifying into another stock may be a better move for your total risk and return.

Are you a potential investor? If you’ve been keeping tabs on H&R Real Estate Investment Trust for some time, but hesitant on making the leap, I recommend you dig deeper into the stock. Given its current undervaluation, now is a great time to make a decision. But keep in mind the risks that come with negative growth prospects in the future.

Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on H&R Real Estate Investment Trust. You can find everything you need to know about H&R Real Estate Investment Trust in the latest infographic research report. If you are no longer interested in H&R Real Estate Investment Trust, you can use our free platform to see my list of over 50 other stocks with a high growth potential.

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Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.